Bajaj Housing Finance Limited (MAINBOARD)

In the Bajaj Housing Finance IPO, the shareholder quota has 3,33,778 lots available for allotment, and the allotment will be done on a proportional basis. The maximum application limit for the shareholder quota is up to ₹2 lakh. This means shareholders can apply for multiple lots, but the total application value must not exceed ₹2 lakh.
Bajaj Housing Finance IPO Details

Incorporated in June 2008, Bajaj Housing Finance Limited (BHFL), a subsidiary of Bajaj Finance Limited, stands as a prominent player in India's financial sector, particularly within the Non-Banking Financial Company (NBFC) landscape. Classified as an 'Upper-Layer NBFC' by the Reserve Bank of India (RBI) under its Scale Based Regulations, BHFL specializes in offering a wide array of financial products, including home loans, loans against property, and working capital solutions for businesses. Headquartered in Pune, BHFL caters to both individual and corporate clients, with a strong focus on the real estate sector. The company’s robust financial health is underscored by its AAA/Stable and A1+ credit ratings from CRISIL and India Ratings, reflecting its high creditworthiness and stable outlook in both long-term and short-term debt programmes. BHFL's comprehensive service portfolio and strong market presence position it as a trusted financial partner for over 308,693 customers across India, with a total of 2,372 employees as of March 2024.

Strength

Strong Brand Heritage: The “Bajaj” brand is well-established and recognized for reliability, contributing to significant brand equity.

Market Leadership: As the second largest housing finance company (HFC) in India by assets under management (AUM), the company boasts a strong growth trajectory and a diversified portfolio.

Advanced Omni-Channel Strategy: The Company employs a strategic omni-channel sourcing approach, leveraging customer-focused digital initiatives and technology to enhance its market presence and operational efficiency.

Weakness

Collateral Recovery Risks: Inability to fully recover collateral value or outstanding sums from defaulted loans could negatively impact the company's financial health and cash flows.

Non-Performing Assets: Difficulty in managing gross non-performing assets (NPAs) or maintaining adequate provisioning could adversely affect financial stability and results.

Covenant Compliance: Failure to comply with financial and other covenants in debt financing agreements may harm the company’s business, results of operations, and financial condition.